zdl_cryptofandomcom-20200214-history
Nuo Network
Basics * DeFi * P2P debt marketplace for lending and borrowing * "We currently (9-2019) support ETH, DAI, MKR and 8 ERC20 tokens on the debt marketplace" * "Nuo Network is non-custodial. All user funds are locked in smart contract based accounts without Nuo Network having any direct or indirect access to those funds. These funds can be accessed only using smart contract based account by a user." How Decentralized is it? * ConsenSys Codefi released (9-2019) a scoring website for DeFi projects. As of 2-11-2019 it has also analysed "Nuo’s scores were strongly influenced by the lack of a public audit report, an attribute that contributes to 25% of the entire score. Nuo has maintained a high collateral index score and moderate to high liquidity." * Was classified Degree 2 DeFi ''on the HackerNoon rankings of 25-4-2019. "These DeFi products are non-custodial and have one additional decentralized component which could include price feeds, initiation of margin calls, margin liquidity, interest rate determination, or platform development, while the rest are still centralized."'' * A BIG side note, is that the blog was written by Kyle J Kistner who is Chief Vision Officer at bZx. He gave his own project the highest ranking. What a surprise. * From the comprehensive blog post: Custody: Nuo contracts are open-source non-custodial from the point of loan origination. Initiating Margin Calls: Nuo centrally monitors margin positions off-chain, and calls into their contracts when a position has gone under margin maintenance. Liquidations are only executed if the price feed confirms that the position is under margin maintenance. Only Nuo’s whitelisted address can call into the contract to initiate the margin call, making this a potential central point of failure. Margin Call Liquidity: Nuo sources margin call liquidity from Kyber and Uniswap, making their margin call liquidity decentralized. Price Feeds: A combination of Binance, Coinbase, and Kyber price feeds are used to guard against premature liquidations and price feed manipulation. This is a centralized aspect of the system. Interest Rates: Nuo uses algorithmic interest rates. Though the rates are responsive to supply and demand, Nuo controls the underlying parameters and can effectively set the rates. Development: Nuo is currently being developed centrally by the team. All contracts are open source. The contracts are mutable with no time-lock." Is it trustworthy? * From this extensive blog criticising Centralized and Decentralized Finance (16-12-2019): "The project pools tokens into shared liquidity and provides its users with proportional interest. The pooling should ensure instant liquidity for borrowers. What makes Nuo unique at the moment is the offering of 3x margin trading on Kyber and Uniswap. Nuo provides instant liquidity for long or short positions on Bitcoin, Ether and some ERC20 tokens. This makes Nuo a contract to contract implementation usable across DeFi products. The platform seems to be growing fast in Asia. Nuo is using their own centralized oracle, which is closed source. we can see they highlighted another pain point of decentralized exchanges, and that is the on-chain congestion during extremely volatile periods of price movement. For a sacrifice of your yield you can get a share of the insurance fund, but it is unclear how much of your assets will it actually cover if such a case will happen. On the Nuo network, in some cases, the lending annual percentage rate can get higher than the borrowing rate. Even though it will probably only happen in low volumes as can we see on the current example with SNX. This is because on Nuo: “Every loan that gets taken on Nuo has a fixed interest that you have to pay regardless of the time in which you repay. The rate of this interest is determined solely by the reserve utilization of that currency at the time of creating the loan.” '' ''The projects smart contracts were audited by Quantstamp, but the audit report, as published, can be summarized by this tweet ''(it's basically saying we audited it but gives no further info) ''Summary: + Insurance fund can protect you by sacrificing profits, reducing risk + Significant potential interest through imbalances on the market + Margin trading on Kyber and Uniswap + Instant liquidity (untested) ''- Lack of proper audit reports'' ''- Centralized closed source oracle which can wipe out your account during network congestion'' ''- Low liquidity in active loans and reserve pools"'' Team, Investors, Partners Team * An Indian team * Varun Despande; co-founder * Ratnesh Ray; co-founder * Siddharth Verma; co-founder Partners * Partners with Wyre (As of 28-10-2019 on the website of Wyre) * Is backed (12-2019) by ConsenSys Category:Companies/Organisations Category:Lending